Shares of MicroStrategy Incorporated [NASDAQ: MSTR] skyrocketed 5.36% on Wednesday after the firm disclosed that it has decided to dump $1 billion worth of its shares. The firm is planning to use the profit from the stock offering to buy even more Bitcoin.
The firm has not made it clear how much of the profit it will use for the purchase of Bitcoin. In a filing with SEC, MSTR explained that the management will hold broad options over the distribution of the net profit of any offering. The declaration of this stock offering comes just after the firm finalized a $500 million junk bond sale for the purpose of purchasing even more Bitcoin.
Shares of MicroStrategy Incorporated have gained +32.05 during the trading session of Wednesday. In addition to this, CEO Michael Saylor is one of the most optimistic Bitcoin advocates in the industry. He also encouraged Tesla Inc (NASDAQ: TSLA) CEO Elon Musk to purchase Bitcoin.
MicroStrategy has been determinedly purchasing Bitcoin since August last year. The firm has also taken on debt multiple times to finance its buying. Due to MicroStrategy’s huge buying of Bitcoin, the stock of MSTR has become a popular substitute for investors. Through the firm’s holdings, they want to get an experience of Bitcoin without acquiring BTC itself.